Airbnb and Quebec announce first tourist-tax agreement in Canada

Airbnb and the Government of Quebec have announced the first-ever tax remittance agreement in Canada.

This agreement allows Airbnb to collect and pay the tax on lodging on behalf of the hosts on its home-sharing platform. Beginning on October 1, 2017, Airbnb will automatically collect and remit the 3.5% tax on lodging on bookings made in any of Quebec’s 22 tourist regions.

“As the first-of-its-kind tax agreement in this country, this is a landmark announcement and defining moment for Airbnb in Canada,” said Alex Dagg, Public Policy Manager for Canada, in a release.

“The agreement in Quebec is an example of how Airbnb and government officials can work together as partners.”

Last year, Airbnb saw almost 1 million guests using lodging in Quebec.

“The agreement announced today is a positive step toward the future and development of tourism in Quebec, since it will make it possible to adapt the taxation system to the new collaborative and digital economy,” said Julie Boulet, Minister of Tourism and Minister responsible for the Mauricie region, in a release.

“In addition, this fall, our government intends to clarify certain elements that should forge a link between the collaborative economy and the commercial activities carried out in the tourism accommodation sector by proposing modifications to the current guidelines.”